In today’s real estate market, a variety of issues can cause delays, which can result in appraisers being tasked with providing a credible, reliable opinion of value under challenging circumstances.
The appraisal process can cause delays in a property’s development or sale, according to an article published in the current edition of The Appraisal Journal, reinforcing the need to have appraisers with local market knowledge provide reliable opinions of value – especially in the current market.
Following extensive deliberation and careful consideration of member feedback, the Appraisal Institute Board of Directors voted Dec. 13 to approve the proposed Candidate for Designation program, effective Jan. 1, 2013.
The Board of Directors in 2010 approved a new strategic vision that will transition the organization from a professional association to a professional society by 2016. The Board’s action will begin that transformation.
Many in the real estate industry have tried to blame the market’s distressed condition on appraisers, saying that appraisers are at fault for producing opinions of value that don’t match a home’s contract or sales price, delaying a recovery in the housing market. But appraisers don’t set the market; they reflect what’s happening in the market.
It’s important to keep in mind that appraisals completed for mortgage transactions are not provided to confirm a sales price; they are used to assist lenders in making lending decisions. It’s troubling that some homebuyers and sellers (not to mention some real estate agents, home builders and others) assume that an appraisal is somehow “wrong” if it doesn’t match the listing or contract price. This is simply not the case. There’s no reason to assume the contract price is the “correct” price simply because it is higher than the appraisal.
Based on its benefits for consumers, the Appraisal Institute fully supports the Sensible Accounting to Value Energy (SAVE) Act, which is federal legislation recently introduced by Sens. Michael Bennet, D-Colo., and Johnny Isakson, R-Ga., that would improve the mortgage underwriting process by ensuring energy costs are included.
Under the SAVE Act, the U.S. Department of Housing and Urban Development would issue updated underwriting and appraisal guidelines for any loan issued, insured, purchased or securitized by the Federal Housing Administration or any other federal mortgage loan insurance agency. [Read more…]
The mortgage-backed securities market is showing some signs of improvement, both in CMBS and RMBS, after coming to a halt at the beginning of the economic crisis in 2008. In spite of the recovery, the consensus among analysts is that they will never achieve their previous levels.
The Appraisal Institute announced its “Volunteer of Distinction” honorees for December: Clifford Cryer, MAI, SRA, of Region II (Colorado Chapter); Carroll L. “Lew” Watson, SRA, of Region IX (Alabama Chapter); and Michael Slade, MAI, SRA, of Region X (South Florida Chapter).
The Appraisal Institute’s member recognition program honors members for their volunteer service to the Appraisal Institute, to the real estate valuation profession and to their local communities. Each month, the Appraisal Institute recognizes one honoree in each region as a Volunteer of Distinction. Region II consists of Colorado, Iowa, Kansas, Missouri, Nebraska, Oklahoma, South Dakota, Utah and Wyoming, plus Manitoba and Saskatchewan, Canada. Region IX consists of Alabama, Arkansas, Georgia, Louisiana, Mississippi, South Carolina and Tennessee. Region X consists of Florida, Puerto Rico and the Virgin Islands. [Read more…]
The Appraisal Institute commends the National Association of Homebuilders for creating guidelines to foster increased cooperation and information sharing among professionals that play a key role in the home buying process.
As the industry leader in green and energy-efficient valuation, the Appraisal Institute in September issued an optional addendum to Fannie Mae Form 1004, the appraisal industry’s most widely used form for mortgage lending purposes.
Currently, the contributory value of a home’s green features is rarely part of the equation. The Appraisal Institute’s new form will help the industry standardize the way residential energy-efficient features are analyzed and reported.
The Appraisal Institute Board of Directors in 2010 approved a new strategic vision that will transition the organization from a professional association to a professional society. As part of that goal, the Board in October 2011 sent notice of proposed bylaws changes to AI members that would create a Candidate for Designation Program. The Board is expected to vote in December 2011.
